Credit Card Charge-offs Fall in May; Payment Rates Reach Another All-Time High - Moody's Global Credit Research

Credit Card Charge-offs Fall in May; Payment Rates Reach Another All-Time High

Credit Card Charge-offs Fall in May; Payment Rates Reach Another All-Time High - Moody's Global Credit Research
Credit Card Charge-offs Fall in May; Payment Rates Reach Another All-Time High
Published Jun 20, 2012
5 pages (3084 words) — Published Jun 20, 2012
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Brief Excerpt:

...In May, securitized credit card charge-offs, as measured by Moody's Credit Card Index charge-off rate, declined by 31 basis points to 4.90% from 5.21% in April. The improvement this month more than reversed last month's anomalous short-lived increase, and is consistent with our expectation for the charge-off rate index to continue lower in the coming quarters and reach about 4% by the end of 2012. The delinquency rate and payment rate indices also showed improvement in May, further underscoring the exceptionally strong credit quality of securitized credit card receivables today. The delinquency rate index improved to a fourth consecutive monthly all-time low of 2.47%. Early-stage delinquencies also dipped to a new low of 0.65%. In addition, the payment rate index rebounded from last month's seasonal decline, and surpassed its historical all-time high that it set just two months ago in March. The yield index inched modestly higher in May, but the sharp improvement in charge-offs resulted...

  
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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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MLA:
Moody's Global Credit Research. "Credit Card Charge-offs Fall in May; Payment Rates Reach Another All-Time High" Jun 20, 2012. Alacra Store. Jun 04, 2020. <http://www.alacrastore.com/moodys-credit-research/Credit-Card-Charge-offs-Fall-in-May-Payment-Rates-Reach-Another-All-Time-High-PBS_SF289687>
  
APA:
Moody's Global Credit Research. (). Credit Card Charge-offs Fall in May; Payment Rates Reach Another All-Time High Jun 20, 2012. New York, NY: Alacra Store. Retrieved Jun 04, 2020 from <http://www.alacrastore.com/moodys-credit-research/Credit-Card-Charge-offs-Fall-in-May-Payment-Rates-Reach-Another-All-Time-High-PBS_SF289687>
  
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